Based on the provided data and recent analyst reports, here's a comprehensive analysis of Allstate's (ALL) valuation:
Valuation Analysis:
Current Market Position:
The stock is currently trading at a Forward P/E of 10.18, showing a significant discount compared to its industry average of 11.53. This indicates potential undervaluation relative to peers.
Analyst Consensus:
Recent analyst coverage shows strong bullish sentiment:
- KBW set a price target of $235.00
- Roth MKM maintained a Buy rating with $230.00 target
- Jefferies initiated coverage with a Buy rating and $267.00 target
- The consensus price target of $229.75 suggests a 19.04% upside potential
Growth & Financial Performance:
Key Valuation Metrics:
- PEG ratio of 1.45 vs. industry average of 1.27
- Current P/E ratio of 12.32
- Market cap of $51.11B
Insider Activity:
Recent insider selling activity, notably CEO Thomas J Wilson's sale of 31,503 shares for $6.05M, suggests some caution. However, this should be viewed in context of overall strong fundamentals.
Conclusion:
Based on the comprehensive analysis, Allstate is currently NOT overvalued. The stock trades at a discount to its industry peers, has strong analyst support, and shows solid fundamentals. The consensus price targets indicating nearly 20% upside potential further supports this conclusion.